Equal mixture of renewables, coal, gas for power by 2030

By Riza Lozada 

The country will eventually be using equal amounts of renewable energy, natural gas and coal by 2030, according to an energy-diversification plan of the Department of Energy (DOE). 

Coal is currently the top source of fuel for power generation, with a total dependable capacity of 33.7 percent. Energy Secretary Zenaida Monsada said that at the current trend of energy contracts signed, coal would reach 70 percent of the energy mix for power generation by 2030.

Monsada said government policy intervention would realize an ideal 30-percent coal, 30-percent renewable energy, and 30-percent natural-gas mix in power generation.

“Under a business-as-usual scenario, coal will reach 70 percent by 2030,” Monsada said.

To achieve the planned fuel mix, Monsada said various stakeholders and the government will push for the passage of laws on energy efficiency, natural gas, energy projects of national significance and a fuel mix policy.

As of June 2015, the DOE noted that the total dependable capacity of 15,878 megawatts (MW) was 33.7 percent coal, 17.8 percent oil-based, 18.9 percent hydro, 17.4 percent natural gas, 10.1 percent geothermal, and renewable sources comprising 1.2 percent wind, 0.7 percent biomass ad 0.5 percent solar power.

As part of its commitment to increase renewable energy capacity to a 30-percent share in the power-generation mix, the DOE said it would award service contracts that total 1,700 MW in potential capacity to renewable energy projects this year.

“The DOE is committed to increase renewable capacity and maintain a minimum of 30-percent share in the power-generation mix in the coming years,” she said.

“Through this government intervention, the country will be able to achieve its undertaking to triple installed renewable-energy capacity by 2030, reflecting its 21st Conference of the Parties pledge and proactively responding to the Asia-Pacific Economic Cooperation’s aspiration of doubling renewable energy capacities of member-economies from 2010 level by 2030,” she said.

Recently, Royal Dutch Shell PLC and France’s Total S.A. expressed interest to set up liquefied natural gas (LNG) terminals in the Philippines.

Pilipinas Shell Petroleum Corp. (PSPC) is finalizing the technical aspects of a front-end engineering design (FEED) study for an LNG facility at the Batangas Bay area by 2017.

Sebastian Quinones, managing director of Shell Philippines Exploration B.V. (Spex) said “Pilipinas Shell hopes to deploy a floating storage regasification unit (FSRU) after finalizing the FEED study ahead of a final investment decision (FID) for the project.”

The Spex executive said the company’s investors and shareholders would only approve the project if there is a good and viable plus-minus 10 percent estimate on the total project cost.

Shell is an operator of the deep-water Malampaya gas field in Service Contract 38, located in northwest Palawan province.

The company said an LNG import terminal would help bridge the domestic demand for gas supplies pending the discovery and development of another gas field.

Malampaya’s production now supports three gas-fired power plants that have a total electricity-generating capacity of 2,700 megawatts (MW). Supply from the gas field is projected to deplete by 2024.

Total’s executives also visited Manila last January and held talks with Monsada.

“They are planning to invest in an LNG terminal,” Energy Undersecretary Donato Marcos said.